Tuesday, October 08, 2019

Stocks Lower into Final Hour on Rising China Trade Tensions, FOMC Commentary, Technical Selling, Tech/Medical Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Most Sectors Declining
  • Volume: Around Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 18.9 +6.3%
  • Euro/Yen Carry Return Index 121.92 -.20%
  • Emerging Markets Currency Volatility(VXY) 8.19 +.24%
  • S&P 500 Implied Correlation 45.70 +5.0%
  • ISE Sentiment Index 78.0 -5.1%
  • Total Put/Call .96 -11.11%
  • NYSE Arms 1.17 -5.7%
Credit Investor Angst:
  • North American Investment Grade CDS Index 61.84 +1.48%
  • America Energy Sector High-Yield CDS Index 503.0 +1.82%
  • European Financial Sector CDS Index 69.50 +2.7%
  • Italian/German 10Y Yld Spread 143.75 +1.0 basis point
  • Asia Ex-Japan Investment Grade CDS Index 79.05 +.73%
  • Emerging Market CDS Index 214.86 +.35%
  • iBoxx Offshore RMB China Corporate High Yield Index 166.27 +.04%
  • 2-Year Swap Spread 3.0 +.25 basis point
  • TED Spread 34.25 +.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -24.5 -.75 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 65.21 -.11%
  • 3-Month T-Bill Yield 1.68% -2.0 basis points
  • Yield Curve .09 -4.0 basis points
  • China Iron Ore Spot 89.35 USD/Metric Tonne -.38%
  • Citi US Economic Surprise Index 19.0 -1.9 points
  • Citi Eurozone Economic Surprise Index -77.30 +.4 point
  • Citi Emerging Markets Economic Surprise Index -11.0 -.2 point
  • 10-Year TIPS Spread 1.48 -3.0 basis points
  • 90.8% chance of Fed rate cut at Dec. 11th meeting, 95.6% chance of cut at Jan. 29th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -177 open in Japan 
  • China A50 Futures: Indicating -143 open in China
  • DAX Futures: Indicating +5 open in Germany
Portfolio:
  • Slightly Lower: On losses in my biotech/tech/retail/medical/industrial sector long
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  • Market Exposure: Moved to 25% Net Long

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